Munich, Germany – Wacker Chemie AG has closed the second quarter of 2021 with significant increases in both sales and earnings, due to strong consumer demand.
The Munich-based chemical company generated sales of €1.5 billion during the three months to end of June, up 40% compared to last year, and 10% sequentially, it announced 5 Aug.
Wacker linked the growth to positive product-mix effects and improved prices, especially for solar-grade polysilicon. Exchange-rate effects dampened sales somewhat.
Second quarter earnings (EBITDA) tripled year-on-year to €326.6 million, due chiefly to substantial year-over-year growth in both volumes and prices of solar-grade polysilicon.
Furthermore, higher volumes and better prices in the chemical divisions as well as very high plant utilisation rates also had a positive impact on earnings.
“Much higher” raw-material prices, however, had a negative impact on earnings, Wacker said.
During the period, Wacker Silicones generated sales of €648 million, up 22% from last year. Segment earnings almost double the prior year’s level at €133.6 million, and came in 10% higher than the preceding quarter, Wacker noted.
Wacker said the increase was mainly due to higher volumes of both speciality and standard silicones.
Growth was particularly strong, for example, in silicones used in consumer applications and sealants.
While product-mix and price effects contirbuted to the increased revenue in the silicones business, exchance rate effects dampened sales, Wacker said.
Commenting on the results, CEO Christian Hartel said Wacker’s silicones business was “benefiting chiefly from its high-margin specialities, while customer demand for standard silicones remained high too.”